PIM: SRI Core Income and Growth Portfolio

Paul Borisoff - Mar 05, 2018

PIM: SRI Core Income and Growth Portfolio – March 2nd, 2018

 

The SRI Core Income and Growth Portfolio* was down 0.6% in February – leaving the portfolio down 0.3% in 2018.   In comparison our benchmark was down 0.5% in February – leaving it up 0.5% in 2018.  Over the most recent 12-month rolling period the portfolio is up 9.8% compared to our benchmark which is up 8.2%.

 

* These returns are reported as a composite, time-weighted, rate-of-return (gross of fees, net of transaction charges) for all accounts in this mandate.  Long-Term Returns/Benchmark Numbers will be reported in our Quarterly Updates.

 

The first two months of 2018 have been difficult for Canadian investors. While the Canadian bond market (FTSE/TMX Canada Universe Bond Index) stabilized in February (up 0.2%) it remains down 0.7% year-to-date (up 1.0% over the last year).  The Canadian stock market (S&P/TSX Composite Total Return Index) was down 1.9% in February though– leaving it down 3.2% in 2018. Over the last twelve months the Canadian stock market is up 4.5%.

 

Global markets have fared much better in recent periods though.  The MSCI World Net (USD) Index (50% of our benchmark) was up 0.1% in February – leaving it up 3.1% in 2018 – and 13.5% higher over the last twelve months (adjusting for the Canadian dollar).

 

Note, the Canadian dollar moved lower in February to $0.7790 CAD/USD from $0.8119 at the end of January – and $0.7948 at year-end – boosting the return on our U.S. and International Equity positions (a year ago the Canadian dollar was at $0.7518 though CAD/USD).

 

Asset Allocation – February 28th, 2018:

4.9% Cash, 16.0% Fixed Income, 28.4% Canadian Equity, 50.7% Global Equity.

 

Recent Updates:

We did not make any changes to the portfolio in January.

 

Please do not hesitate to contact me if you have any question or concerns. 

 

Sincerely,

 

Paul J. Borisoff

Senior Vice President

Portfolio Manager, Senior Investment Advisor